This research examines the effect of tail risk, or extreme risk, on pension funds, concluding that all extreme scenarios have an immediate negative impact that can significantly jeopardise the smooth functioning of a pension scheme, probably as much as the other non-extreme risks.
Singapore’s two largest asset owners, GIC and Temasek, see attractive opportunities in climate adaptation solutions – a relatively underfunded area compared to decarbonisation. The former has already made selective adaptation investments and said the opportunity set across public and private debt and equity could increase to $9 trillion by 2050.
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